Coal India’s standing with investors as a ‘dividend play’ could take a beating after the near-monopoly government miner declared interim dividends that fell below Street expectations.
EdelweissNSE 4.11 % said the company’s dividend payout for FY19 would be much lower compared to previous years as Coal IndiaNSE 0.76 %, whose output fires the country’s thermal power plants and cement kilns, has stepped up expenditure plans to undergird growth.
Last week, the public sector major announced an interim dividend of Rs 5.85 per share — its second for FY19. Investors in Coal India will expect a final dividend this month, but that may not be enough to match up to the company’s payouts in the previous years.
